Rs. 600-Crore Pharma Facility to Turn Kathua into India’s Antibiotic Manufacturing Hub
The project aligns with the government’s broader vision of strengthening India’s biotechnology and pharmaceutical ecosystem, including initiatives such as the ?10,000-crore Biopharma Shakti programme announced in the Union Budget.
- By Newsdesk
- Jammu
- Mar 16, 2026
In a significant push to strengthen India’s pharmaceutical manufacturing ecosystem, a ₹600-crore antibiotic intermediate manufacturing facility is set to come up in Kathua district of Jammu and Kashmir. The project aims to enhance domestic production capacity and reduce the country’s reliance on imported pharmaceutical ingredients.
The foundation stone for the upcoming plant was laid by Union Minister Jitendra Singh, who highlighted the strategic importance of the project in building India’s self-reliance in critical drug inputs. The facility will manufacture Amino Cephalosporanic Acid (ACA), a key intermediate used in producing cephalosporin antibiotics widely used in modern medicine.
The unit is being established by Orchid Pharma with support from the Biotechnology Industry Research Assistance Council (BIRAC), operating under the Department of Biotechnology. The investment is being made under the Government of India’s Production-Linked Incentive (PLI) scheme, aimed at boosting domestic manufacturing of critical pharmaceutical components.
Once operational, the facility is expected to create around 400 direct jobs while generating an equal number of indirect employment opportunities in related sectors such as logistics, supply chains, and ancillary services.
Officials noted that India currently relies heavily on imports primarily from China for ACA, which poses risks to supply stability and pricing. By producing this key intermediate domestically, the new plant is expected to strengthen the country’s pharmaceutical supply chain and improve access to essential antibiotics.
The minister also emphasized that projects of this scale could transform Kathua into a major pharmaceutical manufacturing hub and position the region on India’s pharmaceutical export map. Beyond industrial growth, the initiative is expected to bolster national health security by ensuring a more reliable supply of critical medicines, even during global disruptions.
The project aligns with the government’s broader vision of strengthening India’s biotechnology and pharmaceutical ecosystem, including initiatives such as the ₹10,000-crore Biopharma Shakti programme announced in the Union Budget.
Source: PTI